Paga Group, a UK-headquartered fintech that has become one of Africa’s fastest-growing digital payments companies, has officially launched a US-based digital banking service tailored to Africa’s diaspora.
The service, developed in partnership with a US-regulated bank, enables Africans living in the United States to open and manage a fully regulated US bank account with only a valid form of identification and a US residential address. It marks the first phase of Paga’s broader international growth strategy.
📊 Market Focus & Strategic Imperative
The initial rollout is focused on Nigerians in the US — a diaspora community of approximately 760,000 people — with remittances to Nigeria exceeding US$21 billion in 2024.
Paga’s expansion signals a shift from traditional remittance-only services to full-service diaspora banking: savings, spending, investing and cross-border flows all managed under one roof.
🔍 Service Features & Innovation
The new US-account product includes physical and virtual Visa debit cards, integration with Apple Pay and Google Pay, and connectivity via Plaid to apps such as Venmo and Robinhood. Users can transfer funds to both US and Nigerian bank accounts, with plans to expand to more destination countries in the future.
This proposition addresses obstacles that many African immigrants face: high remittance costs, restricted banking access, and fragmented financial ecosystems. By offering a regulated US-dollar account with cross-border capabilities, Paga is positioning itself as a gateway for diaspora financial inclusion and global mobility.
🌍 Broader Implications for Africa’s Fintech Ecosystem
Paga’s move illustrates several broader themes in African growth and finance:
- Diaspora as Capital Providers: Diasporas are not only sending remittances, they are increasingly demand sophisticated banking and investment tools.
- Cross-border Fintech Expansion: African fintechs are growing beyond the continent, targeting global markets where African communities live.
- Financial Inclusion & Innovation: By reducing barriers for diaspora customers, the service helps integrate previously underserved populations into formal banking systems.
- Investment Opportunity: For investors, services like these open access to diaspora finance flows, which are substantial and growing.
📌 Considerations & Strategic Take-aways
| Consideration | Implication |
|---|---|
| Regulatory compliance | Partnering with a US-regulated bank is critical to ensure FDIC cover, regulatory integration and trust. AInvest |
| Customer trust & brand | The offering must build confidence among diaspora users accustomed to remittance-only services. |
| Technology & integration | Seamless linking to spending, savings, investment and remittance apps is key to differentiate from legacy players. |
| Scalability & markets | Although rollout starts with Nigerians, the model can expand to other African diasporas globally. |
| Remittance flows | With strong remittance links (e.g., Nigeria’s US-based flows > US$21 billion in 2024), the addressable opportunity is large. businessamlive.com |
🚀 Outlook: What Comes Next
Paga’s US expansion can serve as a blueprint for diaspora-centric banking beyond remittances. If successful, it could extend into other diaspora communities (Kenyan, Ghanaian, South African, etc.), and position Paga as a hybrid global-African bank: built for Africans everywhere.
For investors and stakeholders in the Africa Growth Forum ecosystem, this model highlights the power of fintech-driven diaspora finance, cross-border banking, and inclusive growth platforms. It also aligns with broader themes around digital infrastructure, diaspora capital mobilisation and the financial inclusion agenda we’ve addressed across our clusters.
